Compared with the neighboring country, prices for some types of products are 2 or even 3 times more expensive

According to the State Statistics Committee (SSC) of Azerbaijan, in February 2024, the consumer price index for food, beverages and tobacco products in the country amounted to 100.7% compared to the previous month, and in January-February compared to the corresponding period of the previous year - 100.2%. The report also notes that the consumer price index for food, beverages and tobacco products in February 2024 amounted to 99.7% compared to February 2023, including 99.2% for food products, 102.0% for alcoholic beverages, and 111.7% for tobacco products.

It follows from the chart presented by the SSC that in February of this year there was an increase in the consumer price index for basic foodstuffs. Thus, compared with January, the consumer price index for meat and meat products in February amounted to 100.2%, for fish and fish products - 100.9%, for milk and dairy products - 100.2%, for fruits - 103.5%, for vegetables - 102.1%, for sugar, jam, honey, chocolate and sweets - 100.1%, for tea, coffee, cocoa - 100.1%, mineral waters, soft drinks and juices - 100.3%. The prices of bread, bakery products and cereals have not changed.

Also, the message published by the SSC says that compared to the previous month, in February 2024 there was an even greater increase in prices for certain food products - rice, lamb, fresh fish, cottage cheese, butter and olive oil, tangerines, bananas, apples, pears, quinces, pomegranates, cabbage, cucumbers tomatoes, pumpkin, beets, garlic, onions, price reductions were observed mainly for sugar, vodka, and price reductions were observed for buckwheat, eggs, table margarine, sunflower and corn oils, oranges, carrots. The Committee notes that there have been no significant price changes for other foodstuffs.

Market research has shown that a number of food products have been steadily rising in price for 2 months. So, in January and February of this year, prices for rice, lamb, fresh fish, olive oil, tangerines, apples, pomegranates, cucumbers, tomatoes, zucchini, garlic, onions, sugar increased. The prices of olive oil, cucumbers, tomatoes, garlic, as well as olive oil, tomatoes, cucumbers, garlic, have been steadily rising for the last 3 months, and for the last 4 months – for olive oil, tomatoes, cucumbers, garlic. 

Research shows that fruits and vegetables become more expensive in the winter months. According to the SSC, prices for fruits and vegetables have been steadily rising over the past 3 months. Vegetables rose in price by 5.7% in December last year, by 3.0% in January this year, by 2.1% in February, fruits rose in price by 3.4% in December 2023, by 4.7% in January 2024 and by 3.5% in February.

In Azerbaijan, prices for cucumbers and tomatoes have been getting more expensive in the winter months for a long time. Our research conducted over the past few years has shown that the prices of vegetable products in Baku markets are significantly higher than in the capitals of neighboring countries.

Market research conducted in early March of this year in Ankara, showed that the prices of tomatoes, cucumbers and other vegetables in Turkiye are 2-3 times lower than in Azerbaijan. Cucumbers offered to consumers in Azerbaijan for 3 - 4.50 manats per 1 kg are offered twice cheaper in Turkiye, that is, for 1.60 - 2 manats. While the retail price of tomatoes in Turkiye is 0.75 - 1.80 manats (photos are attached), tomatoes of the same quality are sold in Azerbaijan for 3 - 5.5 manats. Tangerines, which are sold in Ankara for 10-12. 5 liras (54-70 gepiks), are offered in Baku for 3 manats 40 gepiks, by 6.3 times more expensive. Apples and pears, depending on the variety, are offered in Ankara for 15-25 liras, that is, for 0.84 - 2.0 manats.  In fact, the prices of tomatoes, cucumbers and other vegetables grown in greenhouses in Turkiye should be higher than in Azerbaijan because Turkiye is an oil and gas importing country. Despite the fact that Azerbaijan is an oil and gas exporting country, products grown in greenhouses in Azerbaijan are offered at a price that is 2-3 times higher than in Turkiye. Fruit prices in Azerbaijan should also be lower, since the electricity used in storage chambers is generated from natural gas produced in our country.

It should be noted that over the past year there has been a decrease in prices for basic foodstuffs in the world. A report published today by the Food and Agriculture Organization of the United Nations (FAO) says that in February 2024, the FAO food price index was 0.7% lower than in January. In February, the organization recorded an increase in price indices for sugar, meat and dairy products, and a decrease in price indices for grain and vegetable oils. In general, the value of the FAO food price index was 10.5% lower than the corresponding indicator last year.

In February, the FAO Grain Price Index was 5.0% lower than in January and 22.4% lower than in February 2023. Compared to last month, there was a decrease in world prices for all major grain products. In February, FAO noted a decrease in world prices for wheat, corn, barley and sorghum. In February, global rice prices fell by 1.6% as a new harvest began in some rice-supplying countries, the organization said in a published report.

The SSC did not record any changes in February compared to the previous month in prices for bread, bakery products and cereals. Despite the FAO's fixation of a significant decrease in world prices for grain products, including wheat, there were no changes in prices for bread, bakery products and cereals in Azerbaijan in February (Tables 1 and 2). Although the import value of wheat imported into the country in February this year decreased by 3.8% compared to the previous month.

It should be noted that in January of this year, a significant decrease in grain imports was recorded in Azerbaijan. Thus, in the first month of 2024, wheat imports decreased by more than half compared to the same period of the previous year, and corn by 4.9 times.

In February of this year, an increase in rice prices was recorded in Azerbaijan compared to the previous month. Despite the fact that rice has fallen in price by 1.6% on the world market. It should also be noted that in January, rice imports to Azerbaijan decreased by 52.9%. The decrease in rice imports in Azerbaijan can be attributed to a serious increase in imports of the same products in the previous year.

In February, the average value of the FAO Vegetable Oil Price Index was 1.3% lower than in January and 11.0% lower than in the same period last year. In February, FAO recorded a decrease in world prices for soybean, sunflower and rapeseed oils, as well as a slight increase in palm oil prices.

The SSC noted that although the prices of butter and vegetable oils in Azerbaijan did not change in February compared to the previous month, the prices of butter and olive oil increased, and sunflower and corn oils decreased.

It should be emphasized that in January of this year, Azerbaijan significantly increased imports of fats and oils of vegetable and animal origin by 2.4 times compared to the same period of the previous year. This is due to the fact that Azerbaijan provides more than 90% of its vegetable oil needs through unrefined crude vegetable oils imported into the country. For this reason, the prices of vegetable oils in Azerbaijan depend on changes in the prices of these products on the world market.

The average value of the FAO Dairy Price Index in February was 1.1% higher than in January and 13.4% lower than in the same period last year. FAO believes that the increase in global butter prices in February was due to high import demand from Asian countries and a seasonal decline in milk production in Oceania.

Over the past year, with the exception of July (for 11 months), prices for milk and dairy products have increased in Azerbaijan. For the seventh month in a row, there has been an increase in prices for milk and dairy products. According to the SSC, in February of this year, milk and dairy products rose in price by 0.2% compared to the previous month. An increase in prices was recorded mainly for cottage cheese and butter.

According to information published recently by the State Customs Committee, 324.5 thousand tons of milk were produced in January - February of this year, which is 0.7% more than a year earlier. At the same time, compared to the same period of the previous year, imports of milk and cream increased by 16.1% in January this year, and imports of butter and other oils from milk increased by 11.0%.

In February, after seven months of steady decline, the FAO Meat Price Index increased by 1.8% compared to January, and decreased by 0.8% compared to the same period last year. FAO bases the increase in beef prices on the fact that harvesting in Australia was lower than expected. And the organization attributes the decline in world prices for mutton to a weakening of import demand from China and a rise in production in Australia to a record level.

The SSC showed a 0.2% increase in prices for meat and meat products in Azerbaijan in February compared to the previous month. The increase in prices for mutton was mainly recorded.

The SSC noted that in January-February of this year, 89.1 thousand tons of meat in live weight, including poultry, were produced in the country, which is 1.5% less than in the same period last year.

In January of this year, meat imports increased by 63.8% compared to the previous year, and imports of live cattle, intended mainly for slaughter, by 43.9%.

In February, the FAO Sugar Price Index was 3.2% higher than in January. The growth of this index continues for the second month in a row, as a result of which its value increased by 12.5% compared to the corresponding period last year. FAO believes that the reason for the increase in sugar prices was forecasts of a decline in production in two leading exporting countries - Thailand and India.

In Azerbaijan, the statistical committee recorded a 0.1% increase in sugar prices in February. And the price of sugar in Azerbaijan has been steadily rising for 5 months now.  It should also be noted that in January of this year, imports of sugar and sugar confectionery increased 2.6 times compared to the same period of the previous year.

Thus, in February 2024, food prices in the world decreased by 0.7% compared to January, while in Azerbaijan they increased by the same amount.  The conducted research shows that prices for a number of fruits and vegetables in Azerbaijan are 2 or even 3 times higher than in neighboring Turkiye (photo attached).

ADDITIONS

Table 1. FAO Food Price Index for March - December 2023 and January-February 2024. Source UN organization FAO

Table 2. Consumer price index for food products for March - December 2023 and January - February 2024 by product groups, compared with previous months, in %. The source is SSC